v3.26.1
Segment Information
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
Segment Information SEGMENT INFORMATION
NW Holdings operates three reportable business segments, which are NW Natural, SiEnergy and NWN Water. NW Holdings also has investments and business activities not specifically related to its reportable business segments, which are aggregated and reported as Other. NW Natural operates as one reportable business segment on a consolidated basis. Prior to the first quarter of 2026, the reportable business segment NW Natural was represented as NWN Gas Utility and excluded certain gas storage and other business activities that were included in Other. Consistent with the method in which the Chief Operating Decision Maker (CODM) reviews each business, these activities were consolidated into NWN Gas Utility and presented as the reportable business segment NW Natural beginning in the first quarter of 2026. NW Holdings and NW Natural historical segment reporting has been recast to reflect their current organizational structure. The recasting did not have a material effect on the consolidated financial statements of NW Holdings or NW Natural.

NW Natural
NW Natural is primarily a regulated local gas distribution company serving customers in Oregon and southwest Washington. NW Natural also provides regulated storage services at its Mist underground storage facility. The Mist underground storage facility serves distribution and interstate storage customers, and owns the North Mist gas storage facility, which serves a local electric company. NW Natural also owns NWN Gas Reserves and NW Natural RNG Holding Company, LLC, which procures regulated renewable natural gas for distribution customers. Additionally, NW Natural encompasses interstate storage services, third-party asset management services, and appliance center retail operations.

SiEnergy
SiEnergy Operating, LLC (SiEnergy), which was acquired January 7, 2025, owns SiEnergy Gas, LLC, which is a regulated natural gas distribution utility, and serves residential and commercial customers in the greater metropolitan areas of Houston, Dallas, and Austin, Texas. SiEnergy also serves several transmission customers in Dallas and Austin, Texas.

NWN Water
NWN Water is a regulated water and wastewater utility serving residential and commercial customers in Oregon, Washington, Idaho, Texas, and Arizona. NWN Water also includes non-regulated wastewater utilities and water services businesses in Oregon, Washington and Idaho, and an equity method investment in Avion Water Company, Inc. (a regulated entity). In addition, NWN Water provides water services to communities throughout the Pacific Northwest and California.

Other
NW Holdings' activities in Other include activities of NW Natural Renewables Holdings, LLC (NWN Renewables), which is engaged in non-regulated renewable natural gas activities; NNG Financial; and NWN Energy including its wholly owned subsidiary NW Natural Gas Storage, LLC (NWN Gas Storage), which was formerly involved in a gas storage business. Other also includes corporate revenues and expenses that cannot be allocated to other operations, including certain business development activities.

Segment Information Summary
Inter-segment transactions were immaterial for the periods presented. Total assets by segment is not regularly provided to the CODM and is therefore omitted. The following table presents summary financial information concerning the reportable segments and other:
Three Months Ended June 30,
In thousandsNW NaturalSiEnergyNWN WaterOtherNW Holdings
2026
Operating revenues$204,802 $13,546 $17,077 $8,127 $243,552 
Depreciation39,592 1,768 2,852 — 44,212 
Income from operations(1)
22,939 4,897 3,419 1,902 33,157 
Interest expense, net17,426 2,607 821 12,498 33,352 
Income tax expense (benefit)2,231 565 750 (2,936)610 
Capital expenditures86,988 20,938 13,331 37 121,294 
2025
Operating revenues$200,807 $11,502 $16,294 $7,591 $236,194 
Depreciation36,564 2,396 2,575 — 41,535 
Income (loss) from operations(1)
22,388 3,589 4,296 (3,062)27,211 
Interest expense, net15,128 2,321 744 12,298 30,491 
Income tax expense (benefit)1,638 360 1,053 (3,991)(940)
Capital expenditures93,514 15,920 10,939 107 120,480 
(1)     Income (loss) from operations is not a financial measure used by the CODM for NW Natural or SiEnergy, but is included in the table above to enable the reconciliation of NW Natural and SiEnergy margin to consolidated income before taxes in accordance with ASU 2023-07.
Six Months Ended June 30,
In thousandsNW Natural
SiEnergy (2)
NWN WaterOtherNW Holdings
2026
Operating revenues$638,698 $45,241 $32,046 $17,970 $733,955 
Depreciation79,036 3,565 5,745 — 88,346 
Income from operations(1)
166,625 18,731 5,818 4,851 196,025 
Interest expense, net35,104 5,150 1,509 24,941 66,704 
Income tax expense (benefit)34,386 3,102 1,304 (5,643)33,149 
Capital expenditures166,603 45,882 22,428 37 234,950 
2025
Operating revenues$649,620 $34,168 $30,203 $16,487 $730,478 
Depreciation72,600 4,466 4,969 — 82,035 
Income (loss) from operations(1)
167,420 13,202 7,339 (6,396)181,565 
Interest expense, net30,708 4,578 1,536 23,064 59,886 
Income tax expense (benefit)37,302 2,304 1,684 (7,703)33,587 
Capital expenditures177,122 26,445 18,990 107 222,664 
(1)     Income from operations is not a financial measure used by the CODM for NW Natural or SiEnergy, but is included in the table above to enable the reconciliation of NW Natural and SiEnergy margin to consolidated income before taxes in accordance with ASU 2023-07.
(2)    SiEnergy was acquired by NW Holdings on January 7, 2025. Results for the period from January 7, 2025 to June 30, 2025 are presented in the table above. Prior to January 7, 2025, NW Holdings did not operate any assets that fall within its SiEnergy segment.
NW Holdings and NW Natural's CODM is the chief executive officer. The CODM uses NW Natural margin, SiEnergy margin and NWN Water income from operations to allocate resources, predominantly in the annual budget and forecasting process. The CODM considers budget-to-actual variances on a monthly basis when making decisions about allocating capital and personnel. The CODM also uses NW Natural margin, SiEnergy margin and NWN Water income from operations to assess the performance of NW Natural, SiEnergy and NWN Water, respectively.
NW Natural Margin
NW Natural margin is the primary financial measure used by the CODM, consisting of NW Natural operating revenues, reduced by the associated cost of gas, environmental remediation expense, and revenue taxes. The cost of gas purchased for customers is generally a pass-through cost in the amount of revenues billed. Environmental remediation expense represents collections received from customers through environmental recovery mechanisms in Oregon and Washington as well as adjustments for the
Oregon environmental earnings test when applicable. This is offset by environmental remediation expense presented in operating expenses. Revenue taxes are collected from customers and remitted to taxing authorities. The collections from customers are offset by the expense recognition of the obligation to the taxing authority. Regulated gas storage margin is equivalent to operating revenues. By subtracting cost of gas, environmental remediation expense, and revenue taxes from NW Natural operating revenues, NW Natural margin provides a key metric used by the CODM in assessing the performance of the NW Natural segment.
The following table presents additional segment information concerning NW Natural margin:
Three Months Ended June 30,Six Months Ended June 30,
In thousands2026202520262025
NW Natural margin calculation:
Distribution revenues$192,851 $189,120 $614,085 $625,028 
Regulated gas storage10,081 9,251 19,687 19,035 
Other revenue1,870 2,436 4,926 5,557 
Total operating revenues204,802 200,807 638,698 649,620 
Less: Cost of gas53,326 56,939 193,470 216,375 
          Environmental remediation2,431 2,296 8,756 8,549 
 Revenue taxes7,906 7,832 24,943 26,397 
NW Natural margin141,139 133,740 411,529 398,299 
Operations and maintenance66,515 63,039 137,045 130,805 
General taxes11,641 11,234 27,678 26,213 
Depreciation39,592 36,564 79,036 72,600 
Other operating expenses452 515 1,145 1,261 
NW Natural income from operations$22,939 $22,388 $166,625 $167,420 

SiEnergy Margin
SiEnergy margin is the primary financial measure used by the CODM, consisting of SiEnergy operating revenues, reduced by the associated cost of gas and revenue taxes. The cost of gas purchased for SiEnergy customers is generally a pass-through cost in the amount of revenues billed to regulated SiEnergy customers. Revenue taxes are collected from customers and remitted to taxing authorities. The collections from customers are offset by the expense recognition of the obligation to the taxing authority. By subtracting cost of gas and revenue taxes from SiEnergy operating revenues, SiEnergy margin provides a key metric used by the CODM in assessing the performance of the segment.

The following table presents additional segment information concerning SiEnergy margin:
Three Months Ended June 30,Six Months Ended June 30,
In thousands2026202520262025
SiEnergy margin calculation:
Distribution revenues$13,546 $11,502 $45,241 $34,168 
Total operating revenues13,546 11,502 45,241 34,168 
Less: Cost of gas3,382 2,977 15,661 11,280 
 Revenue taxes377 364 1,338 1,143 
SiEnergy margin9,787 8,161 28,242 21,745 
Operations and maintenance2,818 1,912 5,632 3,594 
General taxes304 264 314 483 
Depreciation1,768 2,396 3,565 4,466 
SiEnergy income from operations$4,897 $3,589 $18,731 $13,202 
Significant Segment Expenses
Public entities are required to disclose significant segment expenses for each reportable segment if they are regularly provided to the CODM and included in the reported measure of segment profit/loss. This requirement does not necessitate additional disclosure for the NW Natural and SiEnergy segments, as all expense categories are presented above in the NW Natural margin table and SiEnergy margin table, respectively. Significant segment expenses for NWN Water are presented below.
Three Months Ended June 30,Six Months Ended June 30,
In thousands2026202520262025
Operating revenues$17,077 $16,294 $32,046 $30,203 
Operating expenses:
Operations and maintenance9,843 8,068 18,450 15,333 
Depreciation2,852 2,575 5,745 4,969 
Other operating expenses(1)
963 1,355 2,033 2,562 
Income from operations$3,419 $4,296 $5,818 $7,339 
(1) Other operating expenses include general and revenue taxes and other expenses.